The following are frequently asked questions on the arbitration process in

Taiwan.Generally, parties must contractually agree to use arbitration asadisputeresolution mechanism, so arbitration procedures will be set out in the agreement at issue.Ifthe

agreement provides that arbitration is to take place in Taiwan, but does not specify a certain matter, then the Rules ofthe Arbitration ofthe Republic ofChina (the “Arbitration Law”)

will apply. This information is for reference only, and nothing herein is to be construed as providing advice to you in your situation, whichmay be very different from the general example provided here.Please contact our office for a more detailed assessment of your particular situation.

1.How will the venue for arbitration be decided?

Iftheagreementissilentonthevenueforthearbitration,accordingtoArticle20ofthe Arbitration Law, the arbitration tribunal will decide the venue. Taipei is usually the preferable venue as most arbitrators are located in Taipei.

Iftheagreementdoesnotprovidethenumberandprocedureforselectingarbitrators, according to the Article 9 of the Arbitration Rules of the Chinese Arbitration Association(“CAA”),eachpartymustappointonearbitrator,andthesetwoarbitrators will select a third arbitrator to be the chiefarbitrator ofthe panel.

inaccordancewiththeprinciplesofequityifthepartieshaveexpresslyauthorizedthe arbitraltribunaltoapplysuchprinciples.Toapplytheequityprinciplemeansthatthe arbitratormaygivethearbitrationawardaccordingtotheirviewsoffairnessandequity. This principle is recommended only when strictly applying the law would cause disadvantages to the parties.

7.Howlong will it take before the arbitration award is delivered?

According to Article 21 of the Arbitration Law, the arbitral tribunal must render an arbitral award within six (6) months from the commencement of the arbitration procedure. This six-month period may be extended for an additional 3 months if necessary.

8.Can the non-prevailing party appeal an arbitration award?

No appeal is available to the non-prevailing party. According to Article 37 of the ArbitrationLaw,theawardgivenbythearbitraltribunalshallbebindingontheparties and have the same effect as a final judgment given by a court.

9.Howwill an arbitrationaward be enforced?

Toenforceanarbitrationaward,theprevailingpartymustapplytothecourttoissuean enforcement order. It takes about 2 weeks to obtain the enforcement order from the court.

A.The arbitration award concerns a dispute not contemplated by the terms of the arbitration agreement.

B.The arbitration agreement is invalid.

C.The arbitration tribunal fails to give any partyanopportunitytopresent its case.

D.The arbitration proceeding is in violation of the law or the arbitration agreement.

E.Evidenceuponwhichthearbitrationawardrelieshasbeenforgedorfraudulently altered or contains any other misrepresentations.

11.Can the enforcement procedure be stayed during the arbitration revocation process?

Yes, according to Article 42 of the Arbitration Law, during the court procedure to revokeanarbitralaward,thecourtmayissueanordertostaytheenforcementofthe arbitral award if the party who files such request pays a security bond. The bond is usually the same as the amount decided in the arbitration award.

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